The US Dollar Index (DXY) has seen a fresh setback. Nonetheless, economists at Credit Suisse expect DXY to advance nicely towards the 109.25/110.25 region.

Support at 102.55/15 set to hold

“Dips will stay seen as corrective ahead of further strength to the 78.6% retracement of the 2001/2008 bear trend and September 2002 high at 109.25/110.25.” 

“Whilst we would expect a fresh phase of consolidation to develop at 109.25/110.25, we stay biased to an eventual break higher in due course and see no reason not to look for the USD bull trend to extend in due course to test the 121.02 high of 2001.”

“Support at 102.55/15 ideally holds to keep the immediate risk higher.”